Dutch Lady Milk Industries : Berhad registers Q3 revenue of RM338 million

Dutch Lady Milk Industries Berhad registers Q3 revenue

of RM338 million

Global uncertainties, supply chain disruptions and inflationary challenges continue to

cloud outlook for 2023

PETALING JAYA, 15 November 2022: Leading dairy manufacturer, Dutch Lady Milk Industries Berhad (DLMI) registered a revenue of RM338 million for its third quarter ended September 30 with a profit before tax of RM31.1 million.

DLMI attributed the encouraging performance to continued robust demand for milk as an essential product and also the modest price hikes necessary to offset strong inflationary headwinds.

Operating profit meanwhile increased by 9 percent to RM32.1 million but rising costs for global raw dairy materials and negative foreign exchange outcome due to a weakening Ringgit affected the group's operating profit.

DLMI Managing Director, Ramjeet Kaur Virik said the outlook for the rest of the year as well as next year remains uncertain due to inflationary concerns and the persistent global supply chain challenges not just for the organisation but also for the manufacturing sector in general.

She added that DLMI will continue to be prudent and agile in its operations in order to preserve cash and control cost where possible in a complex manufacturing environment.

Dutch Lady Milk Industries Berhad 196301000165 (5063-V) is part of Royal FrieslandCampina N.V.

"DLMI will continue to be focused on our purpose of Nourishing the Nation for many decades to come, with our new advanced production hub in Bandar Enstek scheduled to be operational in 2024," Ramjeet said.

"Our new world-class factory will incorporate Industrial Revolution (IR) 4.0 features into its daily operations which will change the way we manufacture our high-quality dairy products for Malaysians and help contribute to greater IR 4.0 adoption in the country. This will also enable us to amplify our role as a partner to the nation in strengthening the food security and national health agenda," she added.

DLMI has been part of the Malaysian landscape since 1963 and enjoys multi- generational appeal for its various affordable, high quality nutritional products. DLMI is part of Royal FrieslandCampina N.V.

DLMI's 'Grass to Glass' philosophy drives the company's sustainable roadmap with four objectives - nourishing Malaysians with better nutrition, driving sustainable initiatives at the farm level, better balance with a smaller carbon footprint and post-consumption efforts.

About Dutch Lady Milk Industries Berhad

Incorporated in 1963, Dutch Lady Milk Industries Berhad (DLMI) is a leading dairy company in Malaysia. It is owned by one of the largest dairy cooperative companies in the world, Royal FrieslandCampina NV, a Dutch multinational dairy company. DLMI was the first milk company to be listed on Bursa Malaysia in 1968, and the first to introduce Formulated Milk Powder for Children in Malaysia in 1988.

Staying true to our purpose of Nourishing Our Planet and People in Every Stage of Life, DLMI manufactures and sells a wide range of quality dairy products for the home and export market. Through a unique collaboration between FrieslandCampina and four international research teams/universities, we initiated the South East Asian Nutrition Surveys (SEANUTS) study in 2009, involving four countries - Malaysia, Indonesia, Vietnam and Thailand. SEANUTS is the largest and most extensive nutrition and health study ever done in South-East Asia, wherein 16,744 children up to 12 years old were surveyed over a four-year period. The follow-up SEANUTS II was conducted between 2019 - 2021 involving 14,000 children in the four countries. More information can be found at www.dutchlady.com.my

About Royal FrieslandCampina N.V.

FrieslandCampina is one of the largest dairy companies in the world with a cooperative tradition going back 150 years. The company processes the milk from dairy farms into a wide range of dairy products and ingredients. This way Royal FrieslandCampina provides hundreds of millions of people throughout the world with valuable nutrients from milk.

Royal FrieslandCampina N.V. is fully owned by Zuivelcoöperatie FrieslandCampina U.A., with 15,703 dairy farmers in the Netherlands, Belgium, and Germany as members. Through the cooperative, these member dairy farmers own and supervise the company. Together with member dairy farmers, FrieslandCampina manages the entire production chain: from grass to glass.

FrieslandCampina provides consumers with dairy products, such as milk, yoghurt, condensed milk, dairy-based beverages, cheese, butter, quark, and cream. The dairy company supplies specific nutrition to specific consumer

Dutch Lady Milk Industries Berhad 196301000165 (5063-V) is part of Royal FrieslandCampina N.V.

groups, such as children, the elderly, and sportspeople. Professional customers, such as bakers, pastry chefs, chocolate confectioners, chefs, and caterers can rely on FrieslandCampina for a broad product range, including creams, butters, desserts, and fillings. In addition, the company supplies high-quality ingredients to international food producers and pharmaceutical companies.

In 2021, 10,564 member dairy farms in the Netherlands, Germany, and Belgium supplied almost 10 billion kilos of milk for processing into dairy products and ingredients. FrieslandCampina has branches in 32 countries and exports to more than 100 countries worldwide. At year-end 2021, FrieslandCampina employed an average of 22,961 workers (FTEs). For additional information, please visit our website: www.frieslandcampina.com.

Issued by Dutch Lady Milk Industries Berhad

Muhammad Abdul Hadi Abdullah

Corporate Affairs Director

Tel : [phone] Email: [e-mail]

Meera Selvaratnam

Communications Manager

Tel: [phone] Email: [e-mail]

Dutch Lady Milk Industries Berhad 196301000165 (5063-V) is part of Royal FrieslandCampina N.V.